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Top Issuers in Asia–Pacific

Top Issuers in Asia–Pacific

FOR 44 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE OCTOBER 2014 / ISSUE 1050

PAYITSIMPLE USA INSTALLMENT PAYMENTS Merchants can offer consumers using a card at an Top Issuers in Asia–Pacific e-commerce site or the physical point of sale the opportunity to make monthly installment payments through a service Ranked by Purchase Volume on > see p. 5 General Purpose Cards in 2013 PURCHASE VOLUME ($BIL.) RABOBANK MOBILE WALLET ISSUER COUNTRY Debit Credit Rabobank, the second largest issuer of debit cards in the Agricultural Netherlands, has partnered with Samsung, the world’s largest China 942 manufacturer of mobile phones, to launch the Rabo Wallet. > see p. 8 ICBCICBC China CARRIER BILLER BOKU EXPANDS 859 China U.S.-based Boku has acquired Germany-based in an all- Construction China 727 stock transaction. The purchase amount was not disclosed. The Bank new company will merge operations and use the Boku brand. > see p. 6 China 425 VISA EUROPE CARD-LINKED OFFERS China Merchants China Visa Europe will facilitate card-linked offers between consumers, Bank 238 merchants, and card issuers using back-office technology, data Bank of China analysis, and mining from EDO Interactive. Within 36 months the Communications 221 > see p. 8 China TRANSFIRST ACQUIRED BY PRIVATE EQUITY FIRM Everbright China Bank 130 The 12th largest merchant acquirer in the U.S. has been purchased Commonwealth Aust. by private equity firm Vista Equity Partners. Terms were not Bank 122 disclosed. The transaction is expected to close by year-end. China > see p. 12 Minsheng China HEARTLAND’S “OUT OF SCOPE” 122 Japan According to Open Security Foundation and Risk Based Security, UFJ Nicos 109 there were 2,164 data security incidents worldwide in 2013 involving the business, government, medical, and education sectors © 2014 The Nilson Report > see p. 7 GEMALTO OFFERS GLOBAL TSM SERVICE TOP CARD ISSUERS IN ASIA–PACIFIC Over-the-air provisioning to a smartphone of mobile payment and The Asia–Pacific region’s 50 largest general purpose other applications requires providers to have the permission and issuers generated purchase volume of $5.334 assistance of their customer’s mobile network operator (MNO), trillion in 2013 from 3.21 billion cards. This spending at > see p. 6 > see p. 9

INSIDE 2 – 4 Fast Facts CHARTS 10 Top Issuers in Asia–Pacific — 2013 5 Leather Wallet for iPhone 6 10 Top Issuers in Asia–Pacific — 2013 11 Top General Purpose/Visa/MasterCard Card Issuers in Asia–Pacific — 2013

© HSN Consultants, Inc. 2014 THE NILSON REPORT VISIT US ONLINE AT WWW.NILSONREPORT.COM FASTFAST FACTSFACTS TOTAL MERCHANT SERVICES, which provides card payment PHOENIX MANAGED NETWORKS has completed the deployment processing support to more than 100,000 small and midsized of ’s IntelliNAC i6 network controller for its PCI- businesses, will offer its customers EMV-compliant POS compliant network. IntelliNAC has processed as many as 100 million terminals as part of its free terminal placement program. Shelley transactions a month for Phoenix customers. Dan Sullivan is Plomske is VP Product for Total, (747) 888-9000, shelley@ Chief Security Officer at Phoenix, (703) 230-7600, dsullivan@ totalmerchantservices.com, www.totalmerchantservices.com. phoenixmanagednetworks.com, www.phoenixmanagednetworks.com. Thierry Denis is President, North America at Ingenico, (678) 456-1200, Shan Ethridge is VP & GM, North America Group at [email protected], www.ingenico.com. VeriFone, (770) 754-3432, [email protected], www.verifone.com.

AMERICAN EXPRESS cardholders enrolled in the Member- P97 NETWORKS, developer of PetroZone, a cloud-based mobile ship Rewards program can now use their points in select U.S. commerce and behavioral marketing platform used by clients in the McDonald’s restaurants in real time as payment for food and convenience store and fuel retailing industry, has formed a partnership beverages. This capability is expected to roll out to all with ZipLine (formerly National Payment ), provider of participating McDonald’s U.S. locations by December 2014. mobile and card-based ACH-based debit card programs for merchants. Amy Marino, Director, Digital Partnerships & Development Stephen Goodrich is CEO at ZipLine, (561) 568-5540, sgoodrich@ at , (917) 224-9394, [email protected], zipline.biz, www.zipline.biz. Don Frieden is CEO at P97 Networks, www.americanexpress.com. (713) 588-4201, [email protected], www.p97.com.

DISCOVER IT and DISCOVER MORE cardholders can sign up to get has signed a multiyear agreement to a 5% Cashback Bonus on up to $1,500 in online shopping and depart- continue providing financing programs, including private label com- ment store purchases from now through December 2014. mercial and consumer credit card products, to home improvement Heather Roche is VP of Rewards at Discover, (224) 405-4434, company Lowe’s. Tom Quindlen is CEO, Retail Card and EVP at [email protected], www.discover.com. Synchrony Financial, (203) 585-6244, tom.quindlen@ synchronyfinancial.com, www.synchronyfinancial.com. SAVE FEATURED CONFERENCE POWA TECHNOLOGIES has integrated its PowaPOS T-Series plat- Subscribers to The Nilson Report will receive a $300 discount. $300 form with Datacap Systems’ IPTran LT Mobile and PaymentsDrawer product line for mobile POS. Datacap sells its POS products through resellers who are independent software vendors. Justin Zeigler is 2ND VIRTUAL AND DIGITAL Mktg. Dir. at Datacap Systems, (215) 997-8989 x132, justin.zeigler@ CURRENCY CONFERENCE 2014 dcap.com, www.datacapsystems.com. Jeff Dumbrell is CEO at Powa- POS, (404) 428-7848, [email protected], www.powapos.com. Two-Day Conference November 20-21, 2014 CURRENTC, the mobile payment service of Merchant Customer The Carlton Hotel Exchange (MCX), a consortium of merchants who collectively operate New York, NY 110,000+ locations in the U.S., will integrate with InComm, which maintains connections to a variety of vendors offering prepaid cards, Topics include: digital and virtual currencies currently bill payment, membership card discounts, and more. Andy Shober is available and on the horizon, alternative currencies, lessons Chief Sales & Business Development Officer at MCX, (303) 224-0132, learned from recent law enforcement actions, digital and [email protected], www.mcx.com. Phil Graves is EVP at InComm, virtual currencies and FinCEN, evolving state regulatory (770) 240-6100, [email protected], www.incomm.com. and enforcement framework governing digital and virtual currencies, money laundering, AML, and OFAC considerations, HIGHER ONE, a top provider of debit card accounts to college students, counter-party issues/solutions and transaction monitoring, hopes to settle class-action litigation with a payment of $15 million. Plaintiffs in five states alleged the company’s fees and marketing consumer protection and safety considerations, securities and practices were predatory. Higher One maintains the allegations are investment risk management issues, and digital and virtual without merit. It wants the settlement to avoid lengthy and costly currency as securities and investment contracts. Speakers litigation. represent: Chamber of Digital Commerce, Citigroup, Conference of State Bank Supervisors, MetaBank, The Bitcoin Foundation, ANOVIA PAYMENTS, a , will offer its mer- U.S. Department of Justice, U.S. Securities and Exchange chant customers Womply’s analytics platform on a white-label basis. Conference links at www.nilsonreport.com Commission, American Express, Consumers Union, U.S. Called Anovia Insights, features include revenue and transaction Department of the Treasury, Bitcoin Investment Trust, and more. analytics, competitive benchmarking, reputation alerts and monitor- Cost is $2,295. (Use code TNR300.) Contact Nicole O’Neill at ing, social media monitoring, and more. Cory Capoccia is President at Womply, (661) 993-1174, [email protected], www.womply.com. ACI, (212) 352-3220 x5257, [email protected]. Kevin Jones is CEO at Anovia Payments, (469) 621-0161, kevinj@ Register at anoviapayments.com, www.anoviapayments.com. www.americanconference.com/virtualcurrency.

2 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive FAST FACTS

MANAGEMENT CHANGES

90 pages Tobias Schweiger has been appointed COO and CFO at PAY.ON, Figures 49 (89) 452-300, [email protected]. Triet Nguyen has been appointed Managing Director, Corporate and Municipal include cards Credit Solutions Group at NewOak, (212) 209-0775, tnguyen@ in circulation newoak.com. Greg Stamatis has been appointed President at and spending SecureBuy, (408) 478-9760, [email protected]. for more than Christopher Russell has been appointed CEO at USA, (646) 738-6921, [email protected]. Scott Dowty has 920 credit New for 2014 been appointed Chief Revenue Officer at CardConnect, & debit (484) 581-2200, [email protected]. Jean-Marc Thienpont, formerly at Ingenico, has been appointed Managing Director, card issuers Point-of-Sale Solutions at , 31 (20) 240-1240, from 116 countries [email protected]. Allison Guidette has been in all world regions appointed CEO at G2 Web Services, (425) 749-4040, aguidette@ g2llc.com. Bob Guy has been appointed Director of Client Asia/Pacific, Relations and Product at Planet Group, (402) 964-1927, bguy@ , planetgroupinc.com. Nadia Dombrowski has been appointed Europe, Latin America, Chief Legal, Risk and Compliance Officer at hyperWALLET Systems, (604) 482-0090, [email protected]. Middle East/Africa, and Canada Deborah Heng has been appointed General Manager of Singapore Also lists at MasterCard, (65) 6390-6086, deborah_heng@.com. Julianne Gordon has been appointed Vice President of Operations 265 Merchant Acquirers and Underwriting at TouchSuite, (561) 886-1925 x1393, jgordon@ from 65 countries in all world regions touchsuite.com. Eric Schneider has been appointed Head of Region Business Leader for Asia-Pacific at MasterCard Advisors, Order Today (65) 6390-6524, [email protected]. www.nilsonreport.com/specialreport David Atkinson has been appointed EVP of Business Development at Bluepoint Solutions, (760) 410-9000 x21433, david.atkinson@ bluepointsolutions.com. John Harpool has been appointed National Sales Manager at U.S. Bank Multi Service Aviation, PROCESOS DE MEDIOS DE PAGO, the MasterCard acquirer in (832) 486-1011, [email protected]. Josh Gilbert has been Peru, will provide EMV-compliant mobile point-of-sale terminals from appointed Partner at First Annapolis Consulting, (410) 855-8515, VeriFone to its merchant customers. Hiper S.A. is VeriFone’s partner in [email protected]. Christopher Augustin has been Peru. Fernando Lopez is EVP of Latin America at VeriFone, appointed Chief Information Officer at First Data, (305) 671-6561, [email protected], www.verifone.com. Augusto Pflucker is General Manager at Procesos de Medios de Pago, (212) 515-0284, [email protected]. Don Kissock has 51 (1) 213-1610, [email protected], www.mc.com.pe. been appointed Director of Client Relations at First American Payment Systems, (817) 317-9175, [email protected]. STATE BANK in Mongolia will begin issuing JCB brand debit cards in Jordan Harris has been appointed Risk Officer at Oink, the spring of 2015. They will be the first JCB cards issued in Mongolia. (310) 853-1950, [email protected]. Christopher Munz has been D. Batsaikhan is CEO at State Bank, (976) 9911-3729, batsaikhan.d@ appointed Director of Business Development at Mocapay, (207) statebank.mn, www.statebank.mn. 415-0109, [email protected]. Barry McCarthy has been GEMALTO will provide EMV-complaint private label fleet cards to AS24, appointed Lead, Strategic Business at First Data, (404) 890-2220, a subsidiary of Total Group. The fleet cards are accepted at AS24’s [email protected]. Greg Wooton has resigned as network of EMV terminals in 750 fuel stations in 27 countries. CEO at SecureBuy. Ernie Coward has been appointed CEO at Gemalto will also handle card personalization. Philippe Cambriel is SecureBuy, (408) 478-9760, [email protected]. President Europe, Mediterranean, and CIS at Gemalto, Wayne Ostrander has been appointed VP of Business Develop- 33 (1) 5501-5500, [email protected], ment at Total-Apps, (949) 274-8975, [email protected]. www.gemalto.com.

© HSN Consultants, Inc. 2014 THE NILSON REPORT OCTOBER 2014 / ISSUE 1050 / THE NILSON REPORT 3 FAST FACTS GLOBAL PAYMENTS has acquired Ezidebit for $277.6 million (AU$305 TRIONIS, which provides debit and credit card gateway access to POS million). Ezidebit is a processing company focused on recurring pay- and ATM acquirers with more than 86,000 ATMs in Europe, South ment verticals in Australia and New Zealand. It markets through a America, and Australia, will build a gateway that gives acquirers in network of software vendors and via direct channels to select vertical Europe connection to the JCB payment network. The gateway will markets. Global Payments handles payments from merchants in the be available in the first quarter of 2015. Osamu Hino is SVP, Head of Americas, Europe, and Asia-Pacific. Mac Schuessler is President, Sales and Marketing, Europe at JCB, 81 (3) 5778-8372, osamu.hino@ International Business at Global Payments, (770) 829-8240, jcb.co.jp, www.jcbcorporate.com. Ernst Verbeek is CEO at Trionis, [email protected], www.globalpaymentsinc.com. 32 (2) 663-0219, [email protected], www.trionis.com.

BRD GROUPE SOCIÉTÉ GÉNÉRALE in Romania has deployed CHINA CITIC BANK will issue the China CITIC JCB Ultimate Card to nearly 2,000 IP/GPRS point-of-sale terminals and external PIN upscale customers. Ultimate Card is the highest status JCB product in pads from Spire Payments. The devices comply with PayPass a portfolio that includes standard, gold, and platinum cards. 3.x. and PayWave 2.1.1 contactless/NFC requirements. The de- Koichiro Wada is SVP of Sales & Marketing, Asia-Pacific at JCB, vice application was delivered in 10 weeks and supports all the 81 (3) 5778-8373, [email protected], www.jcbcorporate.com. existing BRD value-added applications. Kazem Aminaee is CEO Ann Lee is General Manager of Credit Card Center at China CITIC at Spire Payments, 352 (26) 976-782, kazem.aminaee@ Bank, 86 (0075) 3690-3481, [email protected], spirepayments.com, www.spirepayments.com. www.cncbinternational.com. Marian Iordanescu is Head of Merchant Acquiring at BRD, 40 (21) 301-6501, [email protected], www.brd.ro. DIGITAL RIVER has added Invoice to its portfolio of online payment options in Austria, Denmark, Finland, Germany, Norway, MEONTRUST, a venture-funded company based in Finland, Sweden, and the Netherlands. Klarna now uses Digital River World promises a 3-D Secure service to protect mobile purchases that Payments to process cards and online transfers through its payment is much faster than legacy systems. MePIN, available for iOS and gateway. In 2013, Digital River processed more than $30 billion in Android, is integrated with a payment card issuer’s banking app, and online transactions. Klarna Invoice lets consumers buy items online the MePIN server. It uses Public Key Infrastructure (PKI), as well as a and pay for them by invoice or in installments. Max Emilson is Director simple tap, PIN entry, or a fingerprint swipe. Markku Mehtala is CEO of Global Partner Solutions at Klarna, 46 (70) 001-2789, max.emilson@ at MePIN/Meontrust, 358 (44) 704-6130, markku.mehtala@meontrust. klarna.com, www.klarna.com. Souheil Badran is SVP at Digital River, com, www.mepin.com. (952) 225-3736, [email protected], www.digitalriver.com.

CONFERENCES & SEMINARS TOTAL PAYMENTS ASIA 2014: October 28-29, 2014. The Grand ENGAGEMENT & EXPERIENCE EXPO 2014: Millennium Sukhumvit Bangkok, Bangkok, Thailand. Estimated November 10-12, 2014. The Renaissance Dallas Hotel, Dallas, Texas. attendance: 300. The cost for the two-day conference is $1,785 Estimated attendance: 400. Cost is $1,799 for vendors and $850 (standard) and $985 (government, retailers, , and telcos). for brands (full conference). Subscribers to The Nilson Report will Subscribers to The Nilson Report will receive a 20% discount. receive a 20% discount. (Use code NILSONEE20.) (Use code SZQZ.) Contact Christine Lee at Terrapinn, (65) 6322-2301, Contact Carly Stemmer at Loyalty360, (513) 800-0360 x115, [email protected]. Register at [email protected]. Register at www.terrapinn.com/tpasia2014. www.engagementexpo.com.

CARD & MOBILE EXPO EAST AFRICA 2014: October 29-30, CARDFORUM – CARDSESSION 2014: November 12, 2014. The 2014. The Hilton Hotel, Nairobi, Kenya. Estimated attendance: 200. Archa Theatre, Prague, Czech Republic. Estimated attendance: 300. Cost for the two-day conference is free. Contact Stella Arome, Cost for the one-day conference is $253 (€200 not including VAT). 234 (80) 341-2725, [email protected] or Uwana, Contact Roman Kotlan, Managing Director, at Bank Card Association 234 (701) 473-9939, [email protected]. Registration is via (BCA)/Sdruzeni pro bankovni karty (SBK), 420 (604) 727-501, email only. For more information about the conference visit [email protected]. Register at www.cardandmobileexpoeastafrica.com. www.cardforum.cardzone.cz. CARTES 2014 PARIS: November 4-6, 2014. The Paris Nord 7TH CENTRAL EUROPEAN ELECTRONIC CARD WARSAW

See links at www.nilsonreport.com Villepinte Exhibition Centre, Paris, France. Estimated attendance: 2014 (CEEC 2014): November 26-27, 2014. The Novotel Centrum 20,000+. Cost for the three-day conference is $2,190. Subscribers Hotel in Warsaw, Poland. Estimated attendance: 350. Cost for the to The Nilson Report will receive a 20% discount. (Use code two-day conference is $470. Contact Kama Milewska at Medien PPARIS14). Contact Sarah at Comexposium, 33 (1) 7677-1474, Service, 48 (22) 7173-795 or 48 (507) 199-793, kama.milewska@ [email protected]. Register at apig.pl. Register at www.conkarta.pl. http://badge.cartes.com/.

4 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive LEATHER WALLET FOR IPHONE 6

Mujjo offers a slim, vegetable- Wallets are available in tan tanned leather case with suede- and black. They can be purchased lined interior to protect the new at the company’s website and Apple iPhone 6. A leather case will shipped worldwide. soon be available for the iPhone Mujjo’s first product was a 6 . Two payment cards and leather sleeve for the iPhone a driver’s license can fit into an 4. The company is looking to integrated pocket, giving users an sell its products through retail opportunity to use the leather case store locations worldwide by to replace conventional wallets. way of agents, distributors, and Openings in the wallet retail chains. case expose the volume Remy Nagelmaeker is Founder at rockers, headphone jack, and Mujjo in Venlo, the Netherlands, 31 Lightning connector. (77) 850-8935, remynagelmaeker@ mujjo.com, www.mujjo.com.

PAYITSIMPLE USA INSTALLMENT PAYMENTS from page 1... from PayItSimple USA. Neither PayItSimple nor enters the cycle at any point, they will pay whatever participating merchants assume any credit risk. finance charge rate their issuer assesses for all other Cardholders make their decision to utilize revolving charges. installment payments, including how many months Merchants stand to gain new sales as well for full pay back, before the transaction is sent for as upgrades to bigger ticket items by offering authorization installment payments because consumers can buy by PayItSimple. products and services that were likely unaffordable if Neither payment in full were required up front or if they had PayItSimple to pay finance charges on the items. nor the Merchants do not pay any set up or monthly fee merchant assesses any finance charge for the for PayItSimple. They do pay a per-transaction fee to installment payment plan. PayItSimple on top of the fee they pay card issuers. After receiving approval from the Visa or PayItSimple never holds any money from the MasterCard issuer for the entire amount, PayItSimple installment payments. Its platform merely sends subsequently contacts the issuer, advising it to bill the requests to the issuers. cardholder only for the first installment amount. PayItSimple owns two U.S. patents on its process Visa and MasterCard and has patents pending credit card authorizations Owns two U.S. patents and has in Europe. The company, stay in effect for up to patents pending in Europe. which was founded in Israel, 30 days. PayItSimple’s has received $4.3 million platform will contact the in angel funding and is card issuer toward the end of that time to request working on a $10 million round of venture funding. a new authorization and to bill for the second U.S. acquirers and gateways already signed to installment payment. That process continues each participate with PayItSimple, including offering it month until the final installment has posted to the to their merchants, include Visa-owned Authorize. cardholder’s account. net, , Elavon, First Data, Global If a consumer pays for all other purchases on their Payments, Heartland, TSYS, and WorldPay. By year- credit card account in full every month, including end 2014 another 30 payment gateways are expected the installment amount, they will pay no finance to have committed to PayItSimple. charge to their issuer for the installment purchase. Stacy Fassberg is VP of Marketing at PayItSimple USA If the consumer makes the installment payment in New York, (914) 294-3507, [email protected], while already in the revolving payment cycle, or www.payitsimple.com.

© HSN Consultants, Inc. 2014 THE NILSON REPORT OCTOBER 2014 / ISSUE 1050 / THE NILSON REPORT 5 GEMALTO OFFERS GLOBAL TSM SERVICE from page 1... which takes time and money. Allynis Trusted Services from platforms in France, the U.S., and Singapore. Hub from Gemalto is a turnkey service that lets Gemalto earns revenue on a per-user and per-service financial institutions as well as transport operators, basis. digital service Allynis can handle future configurations including providers, Embedded Secure Elements (eSE), which are and others becoming available in some handsets, and Trusted securely deploy Execution Environment (TEE) hardware/software their apps systems, which will be running inside next-generation using a single mobile devices. connection to The hub, which is operated from Gemalto’s Gemalto to reach more than 40 MNOs worldwide. certified, secure data centers, also supports the There is no need to have contractual relationships provisioning of tokens within EMVCo Payment with individual MNOs. Tokenization Specifications. More than 30 financial institutions, transit operators, and others already link to the hub Also supports provisioning tokens including American Express, Orange, Vodafone, NTT within EMVCo specifications. Docomo, and Softcard (formerly Isis). Multinational companies in particular benefit from Allynis, which creates economies of scale that Jean-Claude Deturche is Senior VP at Gemalto in can be passed on to users. Meudon Cedex, France, 33 (1) 5501-5000, jean-claude. Over 1.5 billion mobile users worldwide are [email protected], www.gemalto.com. covered by Gemalto’s contracts with MNOs, and more than 100 million SIM cards have already received Prior issues: 1,042, 1,039, 1,035, 1,032, 1,030, 1,028, application credentials from the hub, which operates 1,022, 1,021, 1,020, 1,018, 1,017, 1016, 1,014

CARRIER BILLER BOKU EXPANDS from page 1 Both companies link to mobile telecom industry aggregators, Carrier billing appeals to network operators and landline Boku can reach more than 4 consumers who don’t have a card carriers to provide consumers billion consumers in more than account or who are reluctant to 80 countries. use a card for online purchases. Competing carrier-billing Top markets for carrier billing companies include Zong (owned are Japan, Korea, Germany, and by PayPal), Danal, Bango, Scandinavia. Carriers set per- and Fortumo. transaction and monthly spending Merchants that use carrier limits in the $200 range. Single billing tend to be large enterprises. purchases range up to $50. Boku’s merchant clients include Carriers assume all credit risk. with a payment option for Facebook, Electronic Arts, Sony, Sellers of virtual and digital buying virtual items (games) and Spotify. Mopay’s client list is goods remain a growth market and digital goods (music, video). complementary and features top for carrier billers. The newest The Boku/Mopay combination game publishers. In business since opportunity is in physical goods creates an even bigger footprint 2000, Mopay handles more than 5 including tickets, vending, and for Boku. It was already the million payments monthly. magazine subscriptions. largest carrier biller based on the New merchants are signed by Boku has a one-click service number of consumers it reaches Boku and Mopay through direct for payments from mobile devices. and the number of countries in sales efforts and partnerships It is also the first carrier biller which it can operate. Through with third parties including card to obtain an e-money license in a combination of direct links to payment gateways. the European Union, which it carriers and connections through plans to use for selling physical

6 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive goods, initially in the U.K. Boku investors include Andreessen T-Venture Mobile, DFJ Espirit, has connections to U.K. mobile Horowitz, Benchmark Capital, and Holtzbrinck Ventures. network operators Ray Ramillosa is VP, Marketing at Telefonica U.K. First carrier biller to obtain an Boku in San Francisco, California, (O2), EE, and (415) 793-2127, [email protected], e-money license in the EU. Vodafone. First www.boku.com. sales will be for transit tickets and magazines. DAG Ventures, and Khosla Prior issues: 1,018, 1,012, 1,004, Both Boku and Mopay are Ventures. Mopay’s investors were 1,001, 999, 997, 994, 993, 991, 990, venture-funded companies. Boku 988, 986, 979, 965, 964, 960

HEARTLAND’S “OUT OF SCOPE” ACQUIRING from page 1... among others. Breaches involving U.S. entities Heartland’s program, called Heartland Secure, accounted for 48.7% of all incidents but had a 66.5% encrypts all card data immediately at no extra cost to share of the 822 million records that were exposed its merchants. Participating merchants are also given including a warranty against expenses incurred from a data records for breach. MasterCard has deployed Heartland Secure payment in its cafeterias. cards, email Heartland Secure includes an encrypting read addresses, head for both mag- and EMV chip card login credentials, social security numbers, and other transactions. EMV transactions need to be encrypted personal information. because EMVCo and card network specifications The number of breaches discovered by year- allow for card data to be sent in the clear to the end is expected to be higher than last year. Events merchant or acquirer CPU that communicates with already reported in the U.S. alone have involved the POS terminal. JPMorgan Chase, Target, Home Depot, Kmart, and Heartland encryption technology can cover Dairy Queen. payments made at terminals as well as those initiated The steady stream of revelations involving by a Web browser whether initiated by a swipe, insert, breaches of merchants’ tap, or key entry. So far, databases have accelerated Data protection involves encryp- 82,000 EMV chip and/or the efforts of acquirers, mag-stripe card readers in tion, EMV terminals, and tokens. processors, and gateway the U.S. use Heartland’s providers to significantly E3 end-to-end encryption diminish the degree to which their card data is service. Heartland says E3 can reduce a merchant’s exposed at the point of sale, particularly at outlets PCI-compliance costs by up to 73%. owned by large and midsized merchants. The term Heartland Secure’s token service substitutes being used for remediating exposure is “out of scope” a token for the payment card’s account number as applied to PCI DSS compliance. —16 digits to match the number of digits in Visa, Some vendors offer a partial service, which can MasterCard, or Discover primary account numbers include offering only encryption or only tokenization and 15 digits to match American Express. Merchants at the point of sale. A third option is hosting a Web can store the token rather than the active personal page for e-commerce. account. Tokenization reduces the number of system Heartland, the fifth largest U.S. acquirer based components for which PCI DSS requirements apply. on transactions processed, is the most aggressive Once large and midsized merchants embrace EMV, company when it comes to pursuing out-of-scope encryption, and tokenization, a shrinking number acquiring. It markets a comprehensive payment card will be the target of fraudsters. data-protection program that involves encryption, Robert Carr is CEO at Heartland in Princeton, New EMV terminals, and tokenization, believing that no Jersey, (609) 683-3831, [email protected], part of the process should be left exposed. www.heartlandpaymentsystems.com.

© HSN Consultants, Inc. 2014 THE NILSON REPORT OCTOBER 2014 / ISSUE 1050 / THE NILSON REPORT 7 RABOBANK MOBILE WALLET from page 1 Point-of-sale transactions Merchants will be offered manufacturers or mobile will be NFC-based. Maestro discounts on processing fees network operators. card account details will if they upgrade. NFC-based Michiel Helmer is Senior Product be stored in the embedded terminals will automatically Manager of e-Commerce Secure Element (SE) of be provided to newly signed at Rabobank in Utrecht, The participating Samsung merchants and to those Netherlands, 31 (40) 217-7334, Galaxy S4 and Note who renew contracts. [email protected], 3 phones. Over-the- Most payments www.rabobank.com. air provisioning of made using card account details the Rabo Wallet to the SE will will be for SE versus SIM be provided purchases Rabobank was initially involved in a joint by Giesecke below $32 venture called Sixpack that involved & Devrient. (€25) and two bank competitors, ABN Amro About 106,000 of Rabobank’s will not require a PIN. and ING, and three mobile network operators (MNOs) — KPN, Vodafone, customers use S4 and Note Samsung currently holds and T-Mobile. Sixpack aimed to deploy 3 phones, representing 1.5% around 60% of the market NFC wallets that used SIMs to store of its 7.1 million Maestro of new phones sold in the payment card credentials. That project card customers. Netherlands. However its was abandoned in the second quarter Rabobank expects Rabo Wallet newest device, the S5, does of 2012, and Rabobank was not able to reach an agreement with any of the to drive NFC-based terminal not include an SE. With MNOs regarding access to the SIMs adoption among the 56,000+ Secure Element-based they controlled on Android handsets. In merchants in the Netherlands mobile payments uncertain response, the bank decided to partner with which it owns card- for future Samsung devices, with Samsung and store payment card processing contracts. Between Rabobank is looking at credentials in the Secure Element controlled by the device manufacturer. 11% and 13% of the 300,000 POS cloud-based technology such Visa and mobile network operator terminals in the Netherlands are as Host Card Emulation Vodafone have had a global mobile equipped to accept NFC payments software to sidestep the payment partnership since 2012 in which right now. Rabobank merchant problem of relying on prepaid card credentials are stored in card processing contracts cover hardware controlled a SIM. Their SmartPass service was launched in the Netherlands in March of nearly half of the country’s by either smartphone this year. is the Visa issuer. terminal base.

VISA EUROPE CARD-LINKED OFFERS from page 1... partners expect to support card-linked offers in 12 Europe on an SaaS basis, earning revenue mostly on countries. By that time EDO will have 95 employees redemption performance. in Europe. Cards issued by financial institution members Visa Europe will launch with one of Visa Europe generate over 15% of all personal client in the U.K. in the fourth quarter consumption expenditures in Europe measured of this year. EDO will against all other payment cards, cash, and checks. replicate in Europe most Visa card purchase volume at the point of sale grew of what it does in the U.S., last year by 9.2% to $1.860 trillion. That was twice including linking servers to the purchase volume of MasterCard, American Visa Europe’s network, but Express, and Diners Club combined. there will be a significant Crispin Rogers is Director, Targeted Marketing Solutions difference. In the U.S., at Visa Europe in London, U.K., 44 (207) 937-8111, EDO signs both the issuers and the merchants. In [email protected], www.visaeurope.com. Europe, Visa Europe will handle both of those jobs. The EDO platform, which includes a pool of more Essentially, EDO is providing its platform to Visa than 40 million credit and debit cards in the U.S., will

8 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive be offered on an exclusive basis Part of the merchant’s in Europe by Visa Europe, whose advertising funds are used by member banks in 37 countries EDO for marketing support. have issued approximately 500 Merchants can receive help million payment cards. with product selection, budgets, EDO operates on the Visa and MasterCard and goals, as well as of artwork and other networks in the U.S. Of the top 10 U.S. bank marketing materials. When a campaign is in progress, card issuers, 6 use its service. They can give their EDO tracks its performance, which lets merchants cardholders access to offers from 1,000 retailers. modify their offers. Merchants want to find new customers and EDO offers are connected directly to a consumer’s connect to the EDO platform where they use credit or debit card. Consumers receive offers online advertising funds to or through mobile apps. subsidize discounts Can also send a thank you email There are no paper or in the 20% range to mobile coupons to redeem or text on behalf of an issuer. targeted prospects. to receive the discount. EDO’s data analytics EDO’s platform can also engine enables merchants to target cardholders who send a thank you email or text on behalf of an issuer. fit the profile they seek based on their prior spending. Ed Braswell is CEO at EDO in Nashville, Tennessee, With the right offer, those cardholders tend to (615) 297-6080 x110, [email protected], generate larger than average purchase amounts. In www.edointeractive.com. large part because EDO’s platform generates offers that are relevant. Prior issues: 1,030, 1,026, 1,016, 1,005, 1,003, 969

TOP CARD ISSUERS IN ASIA–PACIFIC from page 1... merchants included both However, average annual spending Australia had 6 issuers on consumer and commercial credit, per card was low at $1,477. the list including 1 in the top debit, and prepaid card products. Purchase volume on cards issued 10. Purchase volume for those 6 Cards carried the UnionPay, Visa, in China came overwhelmingly amounted to $321.92 billion from MasterCard, American Express, from the UnionPay network. 38.9 million cards. Average annual JCB, Diners Club, and Maestro It accounted for 89.2% of the spending per card at $8,269 was general purpose the highest in the region. Annual spending per card of card purchase Issuers from Hong Kong, volume from India, , Malaysia, New $8,276 was highest in Australia. the listed Zealand, the Philippines, Taiwan, Chinese issuers. and Thailand ranked on at least brands. Also included in the Japan had 9 issuers on the top one of the three top 50 lists. rankings were domestic-only general purpose card list including The 50 largest general purpose credit and debit card brands in 1 in the top 10. Purchase volume card issuers measured by only Visa India, Indonesia, the Philippines, from Japanese issuers totaled and MasterCard purchase volume South Korea, Taiwan, $415.24 billion from 170.6 million collectively generated $1.373 and Thailand. cards. Average annual spending trillion in spending from 430.0 The ranking of the general per card was $2,434. million cards. Issuers from China purpose card issuers was South Korea had 10 issuers accounted for purchase volume of dominated by China, which placed on the list. Purchase volume for $439.23 billion from 122.4 million 8 of the top 10. China had the those 10 amounted to $411.52 cards, followed by issuers from highest purchase volume with billion from 157.1 million cards. Japan with $337.28 billion from $4.078 trillion. That spending Average annual spending per card 135.0 million cards, issuers from came from 2.76 billion cards. was $2,620. > see p. 12

© HSN Consultants, Inc. 2014 THE NILSON REPORT OCTOBER 2014 / ISSUE 1050 / THE NILSON REPORT 9 Debit Card Issuers in Asia–Pacific Credit Card Issuers in Asia–Pacific Purchase Purch. Purchase Purch. 2013 Volume Cards Vol. 2013 Volume Cards Vol. Rank Issuer, Country (mil. $U.S.) (000) per Card Rank Issuer, Country (mil. $U.S.) (000) per Card 1 Agricultural Bank China $815,360.0 637,000 $1,280 1 ICBC China $295,679.5 88,050 $3,358 2 ICBC China $563,212.5 489,750 $1,150 2 China Construction Bank China $210,169.7 52,020 $4,040 3 China Construction Bank China $517,104.0 532,000 $972 3 Bank of China China $159,804.3 41,899 $3,814 4 Bank of China China $264,765.2 302,589 $875 4 China Merchants Bank China $148,219.8 51,210 $2,894 5 Bank of Communications China $99,508.5 94,770 $1,032 5 Agricultural Bank of China China $126,556.7 44,388 $2,851 6 China Merchants Bank China $89,705.1 83,235 $1,078 6 Bank of Communications China $121,831.0 30,200 $4,034 7 Australia $59,664.6 9,113 $6,547 7 Mitsubishi UFJ Nicos Japan $108,558.3 29,842 $3,638 8 Hua Xia Bank China $43,721.7 25,425 $1,720 8 Sumitomo Mitsui Card Japan $96,005.6 22,990 $4,176 9 China Everbright Bank China $36,105.3 46,890 $770 9 China Everbright Bank China $93,405.8 20,014 $4,667 10 China Minsheng Bank China $29,513.5 38,329 $770 10 China Minsheng Bank China $92,116.6 17,402 $5,294 11 Shanghai Pudong Develop. China $25,090.7 27,361 $917 11 Ping An Bank China $84,539.4 13,810 $6,122 12 KB Kookmin Card South Korea $17,315.0 18,992 $912 12 Shinhan Card South Korea $76,186.1 22,091 $3,449 13 China Guangfa Bank China $16,741.8 23,580 $710 13 China CITIC Bank China $74,401.7 20,779 $3,581 14 Bank of Beijing China $15,132.2 20,176 $750 14 China Guangfa Bank China $71,794.6 27,930 $2,571 15 Credit Union Settlement Australia $14,376.7 1,470 $9,782 15 Samsung Card South Korea $68,806.3 14,617 $4,707 16 Westpac Banking Corp. Australia $13,572.8 5,851 $2,320 16 Credit Saison Japan $66,176.2 37,890 $1,747 17 Shinhan Card South Korea $13,539.4 11,653 $1,162 17 Commonwealth Bank Australia $62,282.7 4,470 $13,933 18 NongHyup Bank South Korea $11,426.8 12,823 $891 18 Westpac Banking Corp. Australia $51,899.8 4,745 $10,938 19 ANZ Banking Group Australia $8,711.7 2,461 $3,540 19 ANZ Banking Group Australia $51,373.8 3,859 $13,313 20 Indonesia $8,426.0 16,750 $503 20 KB Kookmin Card South Korea $51,004.0 13,088 $3,897 21 Nat’l Australia Bank Australia $6,515.7 2,109 $3,089 21 China Industrial Bank China $48,474.7 11,953 $4,055 22 ANZ Bank New Zealand $5,107.0 1,646 $3,103 22 Hyundai Card South Korea $47,438.4 10,164 $4,668 23 Woori Card South Korea $4,173.0 5,116 $816 23 UC Card Japan $39,032.6 14,850 $2,628 24 Hana SK Card South Korea $3,994.0 8,550 $467 24 Nat’l Australia Bank Australia $36,540.9 2,894 $12,625 25 Indonesia $3,585.9 14,893 $241 25 Aeon Financial Serv. Japan $34,753.4 22,240 $1,563 26 State Bank of India India $3,039.3 114,005 $27 26 Woori Card South Korea $30,248.7 5,834 $5,185 27 ICICI India $2,649.5 21,331 $124 27 Cedyna Financial Japan $24,364.3 19,675 $1,238 28 HDFC India $2,421.1 17,427 $139 28 Toyota Finance Japan $23,916.5 11,550 $2,071 29 Maybank Malaysia $1,632.5 4,503 $363 29 Lotte Card South Korea $21,303.0 8,078 $2,637 30 Axis Bank India $1,360.6 13,359 $102 30 Shanghai Pudong Develop. China $19,424.5 13,431 $1,446 31 Samsung Card South Korea $1,254.8 3,493 $359 31 NongHyup Bank South Korea $19,416.6 3,796 $5,115 32 KEB Card South Korea $1,201.9 2,218 $542 32 Hana SK Card South Korea $18,273.8 6,236 $2,931 33 Kasikornbank Thailand $1,120.9 8,904 $126 33 HSBC Hong Kong $17,662.3 4,167 $4,239 34 Heritage Bank Australia $1,080.2 978 $1,105 34 Industrial Bank of Korea South Korea $15,573.9 6,857 $2,271 35 India $805.4 1,782 $452 35 Citi Australia $15,343.4 1,257 $12,205 36 Thailand $749.0 14,044 $53 36 Orient Corporation Japan $13,523.8 10,559 $1,281 37 SC Korea Bank South Korea $678.3 1,867 $363 37 Hang Seng Hong Kong $11,825.9 2,435 $4,858 38 Indonesia $501.9 10,596 $47 38 Hua Xia Bank China $11,674.5 4,200 $2,780 39 BPI Philippines $475.3 4,557 $104 39 CTBC Bank Taiwan $10,646.8 6,599 $1,613 40 Siam Commercial Bank Thailand $459.0 8,409 $55 40 KEB Card South Korea $10,103.9 2,872 $3,519 41 Punjab Nat’l Bank India $432.5 24,064 $18 41 Citi Cards Japan $8,912.8 1,107 $8,761 42 Union Bank of India India $392.5 11,446 $34 42 Cathay United Bank Taiwan $7,861.0 4,305 $1,826 43 CTBC Bank Taiwan $388.3 1,790 $217 43 Bank of New Zealand New Zealand $7,805.2 770 $10,139 44 Bank of Baroda India $315.6 12,735 $25 44 Maybank Malaysia $7,788.3 1,501 $5,188 45 Citi Australia $315.1 555 $568 45 Citibank Taiwan $7,515.5 2,783 $2,701 46 Citi South Korea $307.7 569 $541 46 HDFC India $7,108.5 5,071 $1,402 47 IDBI India $282.9 6,098 $46 47 Kasikornbank Thailand $7,009.0 3,146 $2,228 48 Canara Bank India $273.5 13,321 $21 48 ANZ Bank New Zealand $6,977.3 825 $8,457 49 Krungthai Bank Thailand $269.0 5,630 $48 49 JACCS Japan $6,356.6 6,406 $992 50 Bank of India India $262.2 16,106 $16 50 E. Sun Commercial Bank Taiwan $6,169.3 3,499 $1,763 Visa, , MasterCard, Maestro, UnionPay, and general purpose Visa, MasterCard, UnionPay, American Express, JCB, Diners Club, and general domestic consumer & commercial debit and prepaid cards. purpose domestic consumer & commercial credit and charge cards. © 2014 The Nilson Report © 2014 The Nilson Report

10 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive Top General Purpose/Visa/MasterCard Card Issuers Asia–Pacific GENERAL PURPOSE CARD RESULTS VISA AND MASTERCARD RESULTS 2013 ‘13 Purch. Vol. ‘13 Total Vol. ‘13 Cards ‘13 Purch. Vol. ‘13 Total Vol. ‘13 Cards Issuer, Country Rank (mil. $U.S.) Rank (mil. $U.S.) Rank (000) Rank (mil. $U.S.) Rank (mil. $U.S.) Rank (000) Agricultural Bank China 1 $941,916.7 1 $1,034,161.6 1 681,388 24 $16,379.2 30 $19,535.2 36 7,990 ICBC China 2 $858,892.0 2 $944,086.0 3 577,800 6 $61,141.9 8 $67,481.5 3 28,176 China Construction Bank China 3 $727,273.7 3 $817,336.6 2 584,020 1 $131,222.0 1 $140,862.8 4 26,780 Bank of China China 4 $424,569.5 4 $471,231.0 4 344,488 14 $38,162.0 16 $41,681.5 27 10,056 China Merchants Bank China 5 $237,924.9 5 $253,292.2 5 134,445 31 $11,553.0 39 $12,515.7 82 2,407 Bank of Communications China 6 $221,339.5 6 $241,136.0 6 124,970 5 $72,379.1 6 $77,821.2 12 16,006 China Everbright Bank China 7 $129,511.1 9 $136,413.7 8 66,904 29 $11,748.3 40 $12,408.7 63 4,003 Commonwealth Bank Australia 8 $121,947.2 7 $186,708.8 35 13,583 3 $85,454.7 3 $104,739.6 34 8,387 China Minsheng Bank China 9 $121,630.1 10 $127,598.6 9 55,731 28 $13,225.2 37 $14,299.8 72 3,306 Mitsubishi UFJ Nicos Japan (1) 10 $108,558.3 13 $111,432.6 15 29,842 4 $80,333.2 5 $82,460.1 9 22,083 Sumitomo Mitsui Card Co. Japan 11 $96,005.6 14 $96,885.2 19 22,990 2 $96,005.6 4 $96,885.2 7 22,990 Shinhan Card Co. South Korea 12 $89,725.5 11 $119,590.6 13 33,744 8 $58,134.3 7 $74,350.7 10 18,322 China Guangfa Bank China 13 $88,536.4 15 $93,111.5 10 51,510 39 $8,714.2 47 $9,712.7 66 3,631 Ping An Bank China 14 $84,539.4 16 $86,372.2 34 13,810 36 $9,903.5 45 $10,492.4 93 1,963 China CITIC Bank China 15 $74,401.7 20 $76,129.5 23 20,779 11 $41,977.9 15 $42,785.5 30 9,285 Samsung Card South Korea 16 $70,061.1 17 $81,524.8 26 18,111 17 $28,690.1 21 $35,215.6 29 9,401 KB Kookmin Card South Korea 17 $68,319.1 18 $77,678.1 14 32,080 16 $29,118.7 20 $35,445.2 42 6,544 Credit Saison Japan (1) 18 $66,176.2 21 $69,887.0 12 37,890 10 $48,937.3 12 $51,802.4 2 28,224 Westpac Banking Corp. Australia 19 $65,472.6 19 $77,663.3 47 10,596 7 $58,907.0 10 $63,007.7 37 7,988 ANZ Banking Group Australia 20 $60,085.5 22 $65,508.5 57 6,320 9 $56,697.2 11 $62,120.1 47 5,869 Hua Xia Bank China 21 $55,396.2 24 $59,597.2 16 29,625 69 $3,024.0 88 $3,145.0 122 1,008 China Industrial Bank China 22 $48,474.7 27 $49,469.2 40 11,953 34 $10,375.2 44 $10,810.3 71 3,347 Hyundai Card South Korea 23 $47,696.3 25 $53,297.8 46 10,755 18 $27,603.7 23 $30,966.6 59 4,238 Shanghai Pudong Develop. China 24 $44,515.3 28 $48,720.5 11 40,792 40 $8,375.5 48 $9,243.5 64 3,970 National Australia Bank Australia 25 $43,056.6 29 $45,265.2 68 5,004 12 $40,668.9 14 $42,855.5 57 4,572 UC Card Japan 26 $39,032.6 30 $39,478.7 31 14,850 13 $39,032.6 17 $39,478.7 15 14,850 Aeon Financial Service Co. Japan 27 $34,753.4 32 $36,593.3 21 22,240 19 $24,464.4 25 $25,749.6 13 15,539 Woori Card South Korea 28 $34,421.7 31 $38,343.4 44 10,950 15 $34,404.4 18 $38,319.2 25 10,946 NongHyup Bank South Korea 29 $30,843.3 34 $35,820.4 28 16,620 60 $3,885.5 80 $4,182.0 103 1,655 Cedyna Financial Corp. Japan 30 $24,364.3 36 $29,670.2 24 19,675 21 $18,148.9 28 $22,039.8 18 14,453 Toyota Finance Corp. Japan (1) 31 $23,916.5 41 $24,147.5 41 11,550 22 $17,758.0 32 $17,864.2 32 8,816 Hana SK Card South Korea 32 $22,267.8 40 $24,664.4 32 14,786 27 $13,571.9 35 $15,185.1 33 8,806 Lotte Card South Korea 33 $21,303.0 37 $29,157.4 52 8,078 20 $20,519.8 24 $28,336.1 38 7,981 Bank of Beijing China 34 $18,651.8 43 $20,728.5 22 22,137 93 $1,053.9 133 $1,086.5 148 475 HSBC Hong Kong 35 $17,662.3 45 $19,300.4 74 4,167 23 $17,658.8 31 $19,296.7 61 4,157 Credit Union Settlement Serv. Australia 36 $15,695.9 42 $23,582.1 111 1,615 37 $9,691.5 46 $9,929.6 105 1,615 Citi Australia 37 $15,658.5 47 $16,520.9 106 1,812 26 $13,924.3 36 $14,737.2 104 1,619 Industrial Bank of Korea South Korea 38 $15,573.9 44 $20,252.4 54 6,857 25 $15,573.9 29 $20,252.4 41 6,857 Orient Corporation Japan 39 $13,523.8 50 $14,842.8 48 10,559 33 $10,417.7 42 $11,495.7 40 7,690 ANZ Bank New Zealand 40 $12,084.4 48 $16,055.5 91 2,471 45 $7,479.3 52 $8,106.5 97 1,866 Hang Seng Hong Kong 41 $11,839.8 53 $12,124.9 92 2,465 30 $11,670.6 41 $11,939.5 87 2,227 Bank Central Asia Indonesia 42 $11,819.5 8 $154,321.7 25 19,215 78 $2,132.8 108 $2,138.3 112 1,235 KEB Card South Korea 43 $11,305.8 52 $14,309.4 66 5,089 35 $10,177.6 38 $13,104.7 54 4,742 CTBC Bank Taiwan 44 $11,035.1 54 $11,306.5 51 8,389 32 $10,739.9 43 $11,006.8 39 7,902 HDFC India 45 $9,529.6 33 $36,059.4 20 22,497 38 $9,511.8 19 $36,041.1 8 22,467 Maybank Malaysia 46 $9,420.8 55 $9,593.4 60 6,005 46 $7,171.5 57 $7,310.1 50 5,611 Citi Cards Japan 47 $8,912.8 56 $9,122.4 126 1,017 77 $2,183.8 106 $2,282.0 157 368 Kasikornbank Thailand 48 $8,129.9 23 $64,649.9 39 12,050 41 $8,129.9 9 $64,649.9 21 12,050 Cathay United Bank Taiwan 49 $7,949.9 60 $8,050.8 69 4,835 42 $7,779.9 53 $7,878.4 56 4,715 Bank of New Zealand New Zealand 50 $7,841.9 58 $8,354.2 130 859 43 $7,635.5 51 $8,140.4 126 840 General purpose: Visa, MasterCard, UnionPay, Maestro, American Express, JCB, Diners Club, and domestic general purpose consumer & commercial credit, debit, and prepaid cards. Visa/MasterCard results exclude Maestro and cards that carry only the Plus or Cirrus brands or domestic-only brands. (1) V/MC estimated. © 2014 The Nilson Report

© HSN Consultants, Inc. 2014 THE NILSON REPORT OCTOBER 2014 / ISSUE 1050 / THE NILSON REPORT 11 © 2014 HSN Consultants, Inc. THE NILSON REPORT All Rights Reserved. Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is strictly prohibited and may violate the intellectual property rights of HSN Consultants, Inc. dba The Nilson Report.

TOP CARD ISSUERS IN ASIA–PACIFIC from page 9... Australia with $265.34 billion from 30.0 million billion from 93.6 million cards, and Australia with cards, and issuers from South Korea with $241.68 $217.44 billion from 17.2 million credit cards. billion from 79.5 million cards. Asia–Pacific’s 50 largest debit card issuers Asia–Pacific’s 50 largest credit card issuers generated purchase volume of $2.709 trillion from generated purchase volume of $2.654 trillion from 2.75 billion cards. This was an average of $984 per 760.3 million cards. This was an average of $3,491 card annually. China issuers accounted for $2.516 per card annually. China issuers accounted for $1.558 trillion in debit card purchase volume from 2.32 trillion in credit card purchase volume from 437.3 billion cards, followed by Australia with $104.24 million cards, followed by Japan with $421.60 billion billion from 22.5 million debit cards, and South from 177.0 million cards, South Korea with $358.35 Korea with $53.89 billion from 65.3 million cards.

TRANSFIRST ACQUIRED BY PRIVATE EQUITY FIRM from page 1 TransFirst has been owned by the payment industry include CONTACTS another private equity firm, Misys Financial Software, which Welsh Carson Anderson & Stowe purchased Custom Credit Systems WCAS Jonathan Rather is General (WCAS), since 2007. and IND Group earlier this year. Partner in New York, New York, (212) Once the 893-9570, [email protected], TransFirst sale is www.welshcarson.com. completed, WCAS TransFirst John Shlonsky is CEO will be out of the in Hauppauge, New York, (631) 840- payment industry. 6970, [email protected], It had previously www.transfirst.com. sold various other Vista Equity Partners Kara Hollis is TransFirst handles card and payment industry investments Analyst in Chicago, Illinois, (312) 229- other payments from more than via private transactions including 9508, khollis@vistaequitypartners. 200,000 merchants. Almost all Alliance Data Systems, Card com, www.vistaequitypartners.com. merchants are small to midsized. Establishment Services, Comdata, GlobalCollect, Among nonbank acquirers in the Harbridge for every $1.00 of capital called U.S., TransFirst is seventh largest. Merchant since January 1, 2013. Services, and Ruesch Prior issues: 1,040, 1,038, 1,036, Last year TransFirst handled 465 International. Paycom Software 1,032, 1,029, 1,026, 1,015, 1,013, million payment card transactions was sold by WCAS through an 1,003, 1,000, 995, 994, 990, 967, 949, valued at $48 billion. Among initial public offering. 948, 940, 930, 911, 907, 880, 862, nonbank acquirers in the U.S., As a result of these sales, 825, 709, 701, 657, 655, 635, 628, TransFirst is seventh largest. including those scheduled to 611, 607 Other investments made be completed, WCAS will have by Vista Equity Partners in distributed to its investors $5.82

David Robertson, Publisher Oct 15, 2014

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